Layoffs Deepen Pool of Applicants for Jobs Driving Big Rigs

Con-way
Inc.
used to spend $500,000 a month on advertisements seeking drivers for its fleet of 2,950 long-haul trucks. Now, the company spends less than half that amount.

For years, a shortage of drivers was the single biggest problem for the trucking industry. Con-way,
J.B. Hunt Transport Services
Inc.
and other companies spent millions of dollars annually trying to attract applicants for a notoriously unappealing job that involves spending weeks on the road, sleeping in cramped cabs and showering at dirty truck stops. Annual driver turnover has routinely approached or exceeded 100%.

ENLARGE

Trucking companies suddenly have more candidates than jobs, thanks to a recession-driven jump in applications.
Associated Press

In the cut-throat competition to lure new drivers, companies offered everything from signing bonuses to letting drivers take their pets on the road.

Now, these trucking companies suddenly have more applicants than jobs, thanks to a recession-driven jump in applications from the ballooning ranks of the unemployed and a decline in the number of trucks on the road as freight volumes plummet. In January alone, the industry, which employs roughly 1.32 million people, lost 25,000 jobs, according to the American Trucking Associations.

Some companies say they are seeing a tripling or quadrupling of inquiries from types of people who have historically snubbed driving a truck. They include people laid off from hard-hit industries such as construction and auto-manufacturing. "I've never seen it like this in 24 years, I can tell you," said Herb Schmidt, president of Con-Way Truckload, the San Mateo, Calif., company's long-haul division.

Mark Greenberg, owner of the New England Tractor Trailer Training School in Quincy, Mass., said he used to limit the number of trucking companies that recruited at his campuses because their pitches were "simply taking up too much time during the day." Now he is the one pestering the companies as he tries to find jobs for his students.

Swift Transportation Co. Vice President David Berry said his company has a waiting list of qualified drivers for the first time in his memory. "We're enjoying our newfound popularity," he said.

The sudden plethora of applicants is one of the few silver linings for an industry that has suffered amid huge drops in freight volumes in recent months. In 2008, more than 3,600 trucking companies went out of business, according to Donald Broughton, an industry analyst with Avondale Partners, an investment-banking firm. The result was that 137,650 trucks -- roughly 7% of the industry's capacity -- vanished from U.S. roadways, he said.

Thanks to the jump in applicants and drop in capacity, the turnover rate for the nation's large long-haul carriers has dropped to roughly 65%, according to Bob Costello, chief economist for the American Trucking Associations. By comparison, the turnover rate in 2005 was 130%, he said. The rate has dropped in part because fewer jobs means less "churning" -- drivers hopping from one company to another.

Trucking companies say they now have the luxury of becoming more selective in hiring and retaining employees. Gordon Trucking Inc. reduced its spending on advertising to recruit applicants by 75% last year, but weekly applications still tripled by the end of the year. The company has "become much less tolerant of some of the things that previously we may have overlooked, like idling the truck or taking an extra day off at home," Steve Gordon, chief operating officer of the Pacific, Wash., company, said in an email.

Prime Inc. now more closely scrutinizes an applicant's driving record, number of prior jobs held and other qualifications. The Springfield, Mo., company has been bombarded by an "overwhelming call volume" from job seekers, including some white-collar workers, said John D. Hancock, director of recruiting. One recent applicant identified himself as a day trader, he said.

Trucking officials predict driver shortages will inevitably resurface once the economy rebounds. Attracting drivers has historically been especially problematic for long-haul routes. Salaries for those jobs average $40,000 to $45,000 a year, and drivers must spend weeks at a time away from home.

A federal lawsuit filed in 2004 showed the lengths to which some companies have gone in the past to find enough drivers for their trucks. In the suit, filed in Oklahoma City, CRST Van Expedited Inc. accused J.B. Hunt of illegally poaching its drivers. Testimony revealed that J.B. Hunt's team of 80 in-house recruiters would cold-call the pay phones at CRST's driver-trainee lounges. At the time, J.B. Hunt's annual turnover rate for drivers was 150%, meaning the company needed to hire an average of more than 300 drivers a week to keep its fleet of 11,000 trucks on the road, according to testimony. The lawsuit was settled in 2006 for an undisclosed amount.

Even in the current economic environment, the lifestyle challenges are simply too much for some people to handle. Two years ago, Don Hockersmith of suburban Phoenix lost his job as a superintendent for a home-building company. He enrolled in truck-driving school and took a job with Werner Enterprises Inc., but quit within two months. He was sick of living out of a cab and spending weeks away from his wife and daughter. He now drives a city bus.

"I felt like I was part of a carnival," said the 53-year-old Mr. Hockersmith. "Some of these truck stops are the filthiest places you've ever seen."

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.